The DAX Index has seen rapid price value changes the past two and half days of trading as investors have reacted to news flow which has tested stamina. If you had the fortune to not be involved in the German index the past couple of days of trading and look at your computer screen you could be fooled into thinking the value of the DAX Index is within a tight range as it flirts with the 12750.00 level. The junctures of 12750.00 to 12850.00 have provided plenty of equilibrium the past week.
However, last Friday’s sudden news from the US regarding President Trump certainly flustered equity indices worldwide and the DAX Index was not immune to the prompt drop in value which took place upon opening. However, it is significant to acknowledge that global equity indices including the DAX Index did regain their composure and recovered from the negative gaps that started off the day.
In fact, the DAX Index entered the weekend with positive momentum, which was promptly followed up as the German index opened for trading this morning. Stock markets may continue to feel overpriced to many analysts and the month of September was definitely tumultuous for values, but a sliver of risk appetite remains present in the equity indices which continues to feed the ability of the DAX Index to offer slight signals it can climb higher.
Resistance around the 12800.00 should be monitored, if this level can be proven weak and trading is sustained above the mark it may spark more buying of the DAX Index. Opening calls from US future markets this morning indicate positive price action, however, speculators have seen this show before and by now might be a bit wary of early predictions. It might be a conservative choice to wait for the US markets to open and then attempt to pursue direction.
However, not jumping into the markets can also prove ineffective and may produce a missed opportunity if you believe the DAX Index has the ability to gain short term. While speculators will certainly want to know the direction investors will create in the US markets, they might also feel the inclination to take a gambit and wager that upside momentum will continue short term as traders pursue buying positions in the DAX Index.
DAX Index Short Term Outlook:
Current Resistance: 12800.000
Current Support: 12700.000
High Target: 12900.000
Low Target: 12650.000
